Approximately every fifth car sold in 2023 will be an all-electric model, Reuters reports referencing the research papers published by the International Energy Agency.
IEA believes that in Europe and North America, compact all-electric cars will cost nearly the same as petrol and diesel cars by the mid-decade. This forecast is partially supported by the adoption of the Inflation Reduction Act (IRS) in the United States, which is aimed at backing the eco-friendly segment of the automotive industry and subsidizing EV sales.
The projected electrified car sales volume for this year is expected to grow 35 percent year-on-year to 14,000,000 units. Battery-electric vehicles are expected to make up 18% of the sales, up from just 4% in 2020. China should play a major role in this dynamic: the country was responsible for 60% of all BEV and plug-in hybrid sales worldwide last year.
Smaller and mid-size electric cars are expected to become as affordable as ICE cars by 2025 or so, while full-size SUVs and trucks should follow suit in the 2030s.